Top Sensex losers include names like M&M, Adani Ports, RIL, IndusInd Bank, Sun Pharma, Bajaj Auto, and Infosys.
The S&P BSE Sensex slipped over 250 points on Tuesday while the Nifty50 held on to its crucial support placed at 10,700 levels to end at a 2-week low largely weighed down by trade war jitters.
China trade tensions drag global markets with Asian markets witnessing deep cuts. Shanghai falls 4 percent while Hang Seng dropped 840 points.
“A trade war could significantly affect markets globally and cause prolonged pressure on indices worldwide. The US imports close to $500 b worth of goods from China whereas the latter only $150 b from the US. This could give Trump considerable bargaining power, and this issue might not be resolved in the near term,” Nikhil Kamath, Co-Founder, Zerodha told Moneycontrol.
“Domestically FIIs continue to be net sellers, and the momentum is turning towards the bearish side again. Sectorally, the stocks which had run up over the past few session were the worst hit; Oil marketing companies were exceptionally weak for the session. We would advocate entering fresh shorts at this juncture,” he said.
Sectorally, the S&P BSE Metal index witnessed selling pressure for the second consecutive day in a row followed by the S&P BSE realty index which slipped 1.3 percent, and the S&P BSE oil & gas index reversed Monday’s gains and closed 1.2 percent down.
The S&P BSE Midcap index closed 0.98 percent lower while the S&P BSE Smallcap index slipped 1.2 percent.
Top Sensex gainers include companies like ITC, Dr. Reddy’s Laboratories, ONGC, HDFC Bank, and HDFC.
Top Sensex losers include names like M&M, Adani Ports, RIL, IndusInd Bank, Sun Pharma, Bajaj Auto, and Infosys.
Stocks in news:
Brokerages welcome the management revamp at ICICI Bank Ltd but await more clarity on a probe into nepotism allegations against CEO Chanda Kochhar and possible succession. The stock closed 0.34 percent lower.
Shares of Borosil Glass Works gained 14 percent as the board approved the issue of bonus shares. The company board at its meeting held on June 18 has approved the issue of bonus shares in the ratio of 3:1 subject to the approval of shareholders’ and other authorities.
Shares of Strides Shasun added 1.6 percent as the company got a USFDA approval for Ketoconazole tablets USP. The company’s wholly-owned subsidiary Strides Pharma Global Pte has received final approval for Ketoconazole tablets USP, 200 mg from the United States Food & Drug Administration (USFDA).
C & C Constructions share price is locked at 5 percent upper circuit after the company has entered into a negotiated settlement with State Bank of India (SBI), the lead lender in regard to financial assistance provided to the company by it.
In other news/Global Update:
The Bharatiya Janata Party (BJP) ended its alliance with PDP in Kashmir by withdrawing support to J&K government.
Non-financial corporates in the country may show modest improvement in their leverage levels in the current financial year, supported by
higher revenue and earnings growth, says a report.
The global rating agency, Moody’s, in a report today said the revenue and Ebitda of non-financial corporates that it rates in the country should grow 10 percent and 8 percent, respectively, for fiscal 2019.
The government has decided not to go ahead with Air India stake sale in an election year and will provide required funds for its operations, a senior official said today. The decision comes less than 3 weeks after the proposed 76 percent strategic stake sale in debt-laden national carrier failed to attract any bidder.
Global markets traded significantly lower as investors remained cautious due to ongoing trade war tensions between the world’s largest economies US and China. France’s CAC and Germany’s DAX were down more than a percent at the time of writing this article.
China’s Shanghai Composite was the biggest loser among major global equity markets, falling 3.82 percent after the US President Donald Trump threatened to impose a 10 percent tariff on $200 billion of Chinese goods. Hong Kong’s Hang Seng closed down 2.8 percent and Japan’s Nikkei lost 1.8 percent.
Brent crude futures also traded lower, falling half a percent to $74.95 a barrel on trade tensions and ahead of likely increase in output in the OPEC meeting later in the week.
